Oregon Law Practice Management: Is It Time To Go Paper-Less?

Motivated by environmental concerns, improvements in technology, and the ever-increasing cost of storage, many law firms are exploring the option of going paper-less. Implementing a program to scan and digitally store client files can be daunting. Investing in appropriate hardware and software is just the beginning. The process itself requires organization, protocols, and commitment to training. Once a program is in place, you may find that you or your staff are devoting more time than expected to the conversion. So is it worth it to go digital?

PROFESSIONAL LIABILITY FUND www.osbplf.org THIS ISSUE February 2009 Malprac tice Prevention Education for Oregon Lawyers DISCLAIMER IN BRIEF includes claim prevention information that helps you to minimize the likelihood of being sued for legal malpractice. The material presented does not establish, report, or create the standard of care for attorneys. The articles do not represent a complete analysis of the topics presented, and readers should conduct their own appropriate research. Issue 107 Continued on page 2 Motivated by environmental concerns, improvements in technology, and the everincreasing cost of storage, many law firms are exploring the option of going paper-less. Implementing a program to scan and digitally store client files can be daunting. Investing in appropriate hardware and software is just the beginning. The process itself requires organization, protocols, and commitment to training. Once a program is in place, you may find that you or your staff are devoting more time than expected to the conversion. So is it worth it to go digital? Consider the following: ● How much do you spend each year on storage and maintenance of your paper filing system? Include the cost of folders, binders, paper, labels, notebook dividers, related office supplies, photocopies, filing cabinets, desk storage, shelving, boxes, annual storage fees, on-demand delivery and retrieval fees, and destruction fees. ● How much non-billable time is consumed by maintaining or overseeing off-site storage? Include time spent preparing files for storage, delivering files to storage, retrieving files from storage, reviewing files prior to destruction, contacting clients, and updating your file inventory. ● Are you frequently on the hunt for misplaced files or papers? A lawyer who spends 15 minutes a day looking for documents that are not properly filed will lose $12,300.75 in billable time by year-end. (“Unearthing Your Hidden File Management Costs,” by David Bilinsky and Laura Calloway, Law Practice Magazine, American Bar Association, March 2007. The cost calculation is based on average workdays, billable hours, and rates. See Oregon State Bar 2007 Economic Survey, www.osbar. org/_docs/resources/07EconSurvey.pdf.) ● How much office space do you devote to your paper filing system that could be used for other purposes? In some firms, the estimate is as high as 150 linear feet per lawyer, if closets, workrooms, conference rooms, lawyer offices, and secretarial space are included. If you have never sent closed files off-site, as much as 30% to 40% of your available space may be devoted to storing paper records. For smaller offices in urban areas of Oregon, as much as $150 to $300 of your monthly rent payment may be attributed to keeping paper. (The Lawyer’s Guide to Records Management and Retention, by George C. Cunningham and John C. Montana, American Bar Association, 2006.) Converting to a digital filing system can help you recoup these costs and recapture your billable time. Beyond the immediate savings to your pocketbook, going paper-less has other benefits: ● Records are maintained on-site, accessible to everyone. ● The entire file is in one place. ● Client requests can be met almost instantaneously. Clients will no longer have to wait until the file is retrieved from storage. ● Internal requests can be met quickly. You will no longer have to wait to retrieve a file to rule out a conflict of interest. ● You will be better prepared for electronic filing (e-filing) as it expands to state court, administrative agencies, and other ven-Is It Time to Go Paper-Less? Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=de663934-ed27-45ff-900a-a6f8352ef2edFebruary 2009 – Page 2 www.osbplf.org ues. If you are a federal practitioner, you are already wellschooled in the tips and traps of e-filing. If you are not an experienced e-filer, you may be in for a bumpy ride. In August 2008, the Oregon Supreme Court began accepting voluntary e-filing of all documents. The goal is to expand e-filing throughout all Oregon courts over a five-year period, provided funding is obtained. (“Oregon eCourt Implementation,” In Brief, Issue 105, August 2008.) ● The paper won’t disappear. If you want a hard copy of any document, just hit “print.” So what are the drawbacks? Starting from scratch, hardware, software, and technology support (including training) can easily run $2,000 to $5,000 for a small office. Expect complete implementation of a full-scale paper-less system to take several years, not months. For those brave enough to take the plunge, read about one firm’s journey in Our Paperless World, available on the PLF Web site. (See Additional Resources on page 5.) Here are some practical tips: Staff Involve staff throughout the process: selecting technology, establishing policies and protocols, and implementing security measures. As the end users, staff can offer valuable insight into the flow of information and paper within the firm. Staff will also be more accepting of the transition to digital files if their concerns and input are considered along the way. Implementation will not succeed unless you invest in training for everyone. This means a commitment up-front and on an ongoing basis as you experience turnover. Be prepared to meet this need internally, or find a qualified technology consultant who can help. Technology Buy the best scanner you can afford. Fujitsu (www.fujitsu.com), Visioneer (www.visioneer.com), and Xerox (www.xeroxscanners.com) are all good sources for scanners. Purchase separate flatbed and sheet-fed scanners, or buy a scanner with both features. A sheet-fed scanner will help you scan large quantities of standard-sized documents quickly. A flatbed scanner allows you to place and scan small or delicate items that should not be run through an automatic document feeder. Instead of printing to paper, “print” to Portable Document Format (PDF). PDF captures documents as they appear on-screen with fonts and formatting intact. Although there are other PDF writers, Adobe Acrobat is the gold standard. Saving digital file content using Adobe’s archival standard (PDF/A) ensures that files created in earlier versions of Acrobat are guaranteed to be readable in future versions of PDF. This is not a given if you attempt to keep files in their native application (e.g., Microsoft Word® and WordPerfect®). In addition, PDF files are accessible to anyone who downloads the free Adobe Reader software. Firms using Acrobat 9 Pro or Pro Extended can take advantage of the many tools specific to the legal profession. (See “Technology Tips – Using Acrobat 9 in the Law Office,” Beverly Michaelis, In Brief, Issue 105, August 2008.) Purchase practice or document management software to facilitate organization of data and capture of digital file material (scanned documents as well as e-mail, Web pages, graphics, video files, audio files, photos, word processing documents, and spreadsheets). Options for practice management software include Amicus (www.amicusattorney. com), Practice Master (www.tabs3.com), ProLaw (www. prolaw.com), and Time Matters (www.timematters.com). Some of the more popular document management programs are Worldox (www.worldox.com), Interwoven Worksite (formerly iManage) (www.interwoven.com), Open Text eDocs (formerly Hummingbird) (www.opentext.com), and NetDocuments from LexisNexis® (http://law.lexisnexis. com/net-documents). If you are unsure how to proceed, hire a computer consultant to assist in the selection, installation, and customization of both hardware and software. Learn and use desktop search engines built into your computer’s operating system to find documents (Windows Desktop Search or Mac’s Searchlight). Policies and Protocols Develop file naming and organizing protocols. Using a standardized filing system for paper allows us to find what we want when we need it. The same applies to your digital filing cabinet. Scan all incoming documents to PDF. Set your scanner’s resolution to 150 – 300 dots per inch (dpi), sufficient to produce good, clean copies of your original. (Although lower resolutions produce smaller PDF files, the trade-off may not be worth it. When in doubt, try a test scan before saving a document permanently to your system.) Print all outgoing work product to PDF, including e-mails. Segregate PDFs from native application files. Create two folders for each client matter: one to contain all the PDFs and one to contain native application files (word processing documents, spreadsheets, presentations, jpegs, html files, etc.). The PDF folder becomes the client’s official digital file. The native application folder contains working documents that Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=de663934-ed27-45ff-900a-a6f8352ef2edFebruary 2009 – Page 3 www.osbplf.org Continued on page 4 you can continue to use and manipulate. Use case or document management software as an interface to help you organize, access, sort, and view your PDF files. Establish a retention policy for your digital files. Regardless of how files are kept, the PLF recommends that all client files be kept for a minimum of 10 years. (See the PLF practice aid, File Retention and Destruction, available at www.osbplf.org. Click on Practice Aids and Forms and follow the link to File Management.) Review the PLF practice aid, Checklist for Imaging Client Files and Disposing of Original Documents, for additional steps, including what to do with your paper once it has been scanned. (See Additional Resources below.) Clients Inform clients of your digital storage practices. Consider providing clients with the original paper file after it has been scanned. This will save destruction fees and give existing clients a complete copy of their file to date. Explain how you will provide documents to clients in the future, both in the regular course of business and in the event the client requests his or her file. Update your fee agreement or engagement letters to reflect these policies and procedures. When clients leave your firm, be prepared to provide them with a complete copy of their digital file in a format they can access. This may mean printing the file. With few exceptions, the client is entitled to the entire file. (See Client Files Revisited, available at www.osbplf.org. Click on Practice Aids and Forms and follow the link to File Management. See also, “You Have to Share – The format of documents doesn’t change a lawyer’s duty to release them to a client,” by Kathryn A. Thompson, ABA Journal, September 2008. www.abajournal.com/magazine/you_have_to_share/.) Security Use commonly recommended security measures such as routers, firewalls, anti-virus software, password-protected access, and the like. If you are not well-versed in security issues, take advantage of the ABA’s free Legal Technology Resource Center, open to members and nonmembers: www. abanet.org/tech/ltrc. Useful articles and books can also be found through the Law Practice Management Section: www. abanet.org/lpm/home.shtml. If you are still uncertain how to proceed, hire an expert. Take steps to ensure that documents stored electronically cannot be inadvertently modified or destroyed. This can be done through file property settings in Adobe Acrobat or at the network level by controlling access to folders. Once your system is up and running, consider enabling remote access for lawyers – and possibly clients to their own files. Back up, back up, back up! Beyond Client Files Once a successful system is in place for client files, consider converting administrative and accounting records to paper-less record-keeping (such as scanning bank deposits rather than copying them and e-mailing billing statements to clients with e-mail accounts). Is It Paperless or Paper-Less? Going digital does not mean that all paper will go away. Many practitioners will still prefer to hold paper in their hands, especially in the drafting or review stage. Many clients lack digital access and will continue to need paper copies. A national survey conducted in 2008 found that 33% of U.S. heads of household had never used a computer to create a document, 18% of households are without Internet access, and 20% of all heads of household have never sent an e-mail. (Survey: One-Fifth of Americans Have Never Used E-Mail, by Steven Musil. [CNETnews.com, May 18, 2008.] http://news.cnet.com/8301-10784_3-9946706-7.html?tag=mncol.) Beverly Michaelis PLF Practice Management Advisor Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=de663934-ed27-45ff-900a-a6f8352ef2edFebruary 2009 – Page 4 www.osbplf.org Additional Resources The following are available on the PLF Web site, www.osbplf.org, as a resource to those who are ready to go paper-less: Practice Aids ● Checklist for Imaging Client Files and Disposing of Original Documents (Technology) ● Digital Signatures (Technology) ● Mail Handling – Paperless Filing System (Mail Handling) ● Our Paperless World (Technology) ● Retention of Electronic Records (Technology) In Brief Articles ● Document Destruction – June 2005 ● Four Simple Ways to Save Client E-Mail – November 2006 ● How to Back Up Your Computer (and Application Service Providers) – February 2006 ● Resources for Backing Up Your Computer – February 2006 ● Technology Tips: Using Acrobat 9 in the Law Office – August 2008 Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=de663934-ed27-45ff-900a-a6f8352ef2ed

"My best business intelligence, in one easy email…"

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Privacy Policy (Updated: October 8, 2015):

hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.